Chevron CEO warns against unwise diesel export ban, says it could make energy crisis worse

Chevron CEO Mike Wirth warned Wednesday it would be “unwise” of the US to impose a ban on diesel exports, saying such a policy could actually make the global energy crisis worse.The comments came after President Trump recently ruled out such a ban, though he threatened one last month.The commander-in-chief said the measure was not necessary after European countries heeded his demands to release fuel from their reserves.“Export bans, be they in the US or in other countries, actually take supply off the global market and they run the risk of making the situation worse,” Wirth told CNBC’s “Squawk Box Europe.” “The US has been a reliable supplier to the world at a time when it needs it,” he said.

“And I think it would be unwise for the US to create questions in the minds of our allies and our partners as to whether or not we will be there with reliable supply when times are difficult.” Trump previously said he was “very seriously” considering a ban on diesel exports from the US — the world’s biggest supplier of the substance — in a bid to lower prices ahead of the November midterm elections.Such a ban could immediately reduce US prices by 30 or 40 cents a gallon, but the relief would be short-lived, according to Joe Adamski, managing director of ProcureAbility, a supply chain consultancy.As the US market becomes flooded with supply, producers would start losing money and move their distillate refineries elsewhere, he said.Trump took the ban off the table on Friday, after Europe agreed to release up to 100 million barrels of diesel and crude oil.

The president also signed an executive order this week allowing a more widespread use of tax-exempt diesel.“Europe has a lot of diesel, and they’re going to be making a major world contribution, and so are we,” Trump was quoted as saying by Politico.“And we’re not going to be doing the export ban.”Brent crude oil rose 2% to $102.55 a barrel Wednesday as traders grew concerned abou...